The Bank of England has raised alarms about US President Donald Trump's increasing trade tariffs, suggesting they may lead to diminished disposable income for British households. Governor Andrew Bailey noted significant risks to both the UK and global economies, emphasizing potential output reduction and cost increases. Monetary policy committee member Megan Greene pointed out the tariff-induced downward pressure on UK growth, while Professor Alan Taylor suggested that trade disruptions could lead to worse economic outcomes. Bailey stressed the importance of open trade and collaborative international institutions for resolving disputes.
The risks to the UK and global economies from President Trump's trade tariffs are substantial, potentially reducing output and raising costs for households.
The balance of risk regarding trade disruptions and tariffs is heavily tilted to the downside, indicating that it could negatively impact UK economic growth.
Bailey expressed that open trade fosters innovation and growth, urging that any trade disputes should be settled through established institutions.
Bailey warned of further upheaval if the US withdraws from international economic bodies, calling the potential decision very damaging for the world.
Collection
[
|
...
]